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Exam 4: Demanding Ethical and Socially Responsible Behavior

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Question 21

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Last week, the Citizens for a Greener America sent a formal letter to Tee Time Golf Resort requesting that the private club measure its carbon footprint and thusly publicly disclose the amount of fertilizer and other carbon-emitting substances it's using on its two award-winning golf courses. Citizens for a Greener America is an example of

A) an employee organization that has emerged at the resort.
B) a watchdog group.
C) a disgruntled nonprofit organization that has a beef against golfers.
D) a public interest group that is demonstrating social responsibility.

E) A) and B)
F) B) and C)

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Question 22

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In order to avoid the costly act of being sued in court, it makes good sense to manage your business ethically.

A) True
B) False

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Question 23

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Which of the following is an unresolved ethical issue that surrounds global trade?

Getting even is one of the most powerful incentives for good people to do bad things.

Given the level of diversity within the United States, agreement on common standards of ethical behavior is unachievable.

Management's philosophy at Nike has often been that a fit body contributes to more productivity at work. Nike provides exercise facilities at its headquarters in Beaverton, Oregon, and lets employees use work time each day to relieve stress through exercise. This serious position on physical fitness is part of Nike's

Recently, Silky Soft Inc., a clothing and soft goods company agreed to adopt higher ethical standards with respect to contract manufacturers producing their goods. Company leadership agreed this was a good approach to avoid the U.S. government's intervening and creating new laws to force the entire industry to work only with foreign manufacturers who operate with high ethical standards. This was sensible strategy on the part of the clothing and soft goods industry.

Before it was publicly known that IBM was going to take over Lotus Development, an IBM secretary told her husband, who told two co-workers, who told friends, relatives, business associates, and even a pizza delivery man. A total of 25 people received the information and traded on this tip to make a profit. These people were

You are in a business meeting at work that requires your group to make an ethical decision. Your willingness to post the final decision on the bulletin board in the break room for all to see passes the test: "How will it make me feel about myself?"

Enrico is a CPA for a large company. Recently, he noticed that the company's accounting records significantly overstated the amount of inventory on hand. This led to an overstatement of the assets the company holds. Initially, he brought it to the attention of his supervisor, but when nothing was done to correct the mistake in a timely manner, he decided the best course of action was to report it to the appropriate government official. Although his actions took him outside the company, Enrico was counting on current law, under the ________, to protect him against company retaliation.

"Actions speak louder than words!" is an old saying that refers to the fact that people's actions-how they act as opposed to what they say-are often testament to their true ethical values.

A business should be managed ethically to keep existing customers and attract new customers.

Whistleblowers have long been known as people with a universal moral calling. However, rarely did these individuals receive rewards for their efforts. In reality, they would often fall onto hard times. But in 2010, with the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, a provision permits whistleblowers to

A recent study revealed that most Americans have

A high-level manager gathers his team of supervisors together to create a new office policy that will affect all employees at the company. After receiving a verbal okay from the supervisors, he then proceeds to pass around a written form of the new policy and asks all members of the team to initial it. He explains to the supervisors that the new policy will be posted in the break rooms on each floor of corporate headquarters. If you were a part of this work team, which question would you ultimately ask yourself before initialing your approval of this policy?

Dewey Cheatsum urges his employees to find and use legal loopholes to gain a competitive advantage whenever they can. In keeping within the legal limits of the law, the employees are within their compliance-based ethics rights.

A firm's carbon footprint is

Often it is the threat of negative publicity that pressures businesses to enforce their corporate code of ethics.

While telling an abusive joke about an ethnic group may not be unlawful, it is unethical.

Compliance-based ethics codes focus on preventing unlawful behavior by increasing control and by penalizing wrongdoers.